Solana adds $1B worth of stablecoins in December

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As a seasoned analyst with over two decades of experience in the crypto markets, I have witnessed the evolution of digital assets from their infancy to the behemoth they are today. The recent surge in stablecoin adoption on the Solana network is nothing short of extraordinary. With my fingers firmly on the pulse of the industry, I can confidently say that this is not just a passing trend, but a testament to the resilience and adaptability of blockchain technology.

The influx of USD Coin (USDC) into Solana’s ecosystem in December, amounting to an additional $1 billion, underscores the accelerating adoption of stablecoins and the network’s meteoric rise in the decentralized finance (DeFi) landscape. The fact that Solana now hosts approximately $5 billion in stablecoin total value locked (TVL), with nearly $4 billion of that comprising USDC, speaks volumes about its growing prominence.

Tether’s USDt (USDT) comes a close second, with roughly $1 billion in TVL on Solana. This is a significant shift from the past, where Ethereum was undisputedly the king of DeFi and smart contracts. However, Solana has emerged as a formidable challenger, outperforming Ethereum by approximately 8x since 2023, according to TradingView data.

This growth is not just about numbers; it’s about real-world adoption. Retail traders are increasingly entering the crypto market through Solana, fueled by speculation around Solana-based memecoins and AI agent tokens. Even institutional players like Grayscale have taken notice, with Jupiter (JUP) and Jito (JTO), two Solana-native DeFi apps, making it to their list of the top 20 tokens to watch in Q1 2025.

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However, let’s not forget that Ethereum still holds the crown when it comes to stablecoin TVL, exceeding $110 billion as of Dec 31, according to DefiLlama. But remember, Rome wasn’t built in a day, and neither will the Solana-Ethereum battle be resolved overnight.

And now, for a bit of humor to lighten things up, I can’t help but think of a joke: Why did the stablecoin cross the road? To reach the other blockchain, of course! Because in the world of crypto, it’s all about crossing bridges and breaking boundaries.

As an analyst, I’ve observed a significant increase in the total value of stablecoins on the Solana network, with an addition of approximately $1 billion in December, predominantly in the form of USD Coin (USDC). This insight is derived from data provided by DefiLlama.

2024 saw a surge in the use of stablecoins, with this trend underscoring their increasing acceptance. Additionally, the Solana network gained significant recognition within the decentralized finance (DeFi) sector that year.

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Currently, around $5 billion worth of stablecoins are secured on the Solana platform, with roughly $3.99 billion being USDC. This information is derived from available data.

Tether’s USDt (USDT) is Solana’s second most popular stablecoin, at roughly $1 billion in TVL. 

Stablecoin adoption

On December 31st, the combined market capitalization of USDT (Tether) and USDC (USD Coin) across various blockchain platforms was approximately $137 billion for USDT and around $44 billion for USDC, as reported by CoinGecko.

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The market value of stablecoins saw a significant surge following Donald Trump’s victory in the U.S. presidential election in November. According to CryptoMoon Research, many people think that Trump’s presidency could be advantageous for the crypto industry.

Over the past two months, the total value of the three leading stablecoins – Tether (USDT), USD Coin (USDC), and Dai (DAI) – has collectively increased by over $25 billion, as per a December 26th report from Citi.

In a positive turn, stablecoins are identified as the entry point to Decentralized Finance (DeFi), according to Citi’s assessment.

Ethereum challenger

As a seasoned crypto investor, I’ve noticed that Solana is making significant strides and posing a formidable challenge to Ethereum, particularly in the decentralized finance (DeFi) sector and areas demanding smart contract functionalities.

From 2023 onwards, SOL (SOL) has significantly surpassed Ether (ETH), roughly eight times over, as per data gathered from TradingView.

By the year 2024, Solana’s Total Value Locked (TVL) approximately quintupled, climbing from approximately $1.4 billion to more than $8.6 billion, as reported by DefiLlama.

More retail investors are joining the cryptocurrency market using Solana, as anticipation grows for meme coins and AI agent tokens developed on Solana. This is according to a statement made by Grayscale Research in their December 30th note.

In December, Grayscale included Jupiter (JUP) and Jito (JTO), two decentralized finance applications based on Solana, among the top 20 tokens worth monitoring during the initial quarter of 2025.

According to Kairos Research, the Solana staking pool known as Jito generated over $100 million in monthly earnings from priority fees and tips during both November and December last year.

Nevertheless, the total value locked (TVL) in Ethereum’s stablecoins remains significantly larger than that of Solana’s, standing at over $110 billion, as reported by DefiLlama on December 31.

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2024-12-31 23:48